Exercise 9-10 During 2017, Bridgeport Furniture Company purchases a carload of w
ID: 2515545 • Letter: E
Question
Exercise 9-10
During 2017, Bridgeport Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Bridgeport for a lump sum of $55,000 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below.
Type
No. of Chairs
Estimated Selling
Price Each
During 2017, Bridgeport sells 200 lounge chairs, 100 armchairs, and 140 straight chairs.
What is the amount of gross profit realized during 2017? What is the amount of inventory of unsold straight chairs on December 31, 2017? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.)
$
Type
No. of Chairs
Estimated Selling
Price Each
Explanation / Answer
Cost per chair = $55000/1700 = $32.35 Gross Profit during 2017 = Total sales - Total costs Total sales =200*90+100*80+140*50=$33000 Total costs = 440*32.35= $14234 GP = 33000 - 14234 = $18766 the amount of inventory of unsold straight chairs on December 31, 2017 =(800-140)*$32.35 = 21351
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.